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Logistics Management and Strategy
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Logistics Management and Strategy

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Mô tả chi tiết

Logistics Management

and Strategy

3rd edition

Competing through the supply chain

Alan Harrison and

Remko van Hoek

and Strategy

Logistics Management

3rd

edition Harrison and van Hoek

Logistics Management and Strategy

Competing through the supply chain

3rd edition

Alan Harrison and Remko van Hoek

A concise, applied and strategic introduction to the subject of logistics and supply chain management, perfect

for modern managers and students of logistics and supply chain management.

Logistics and supply chain management continue to transform the competitive landscape and have become

one of today’s key business issues. This third edition of Logistics Management and Strategy continues to take a

practical, integrated and international approach to logistics and includes the very latest research to reflect the

innovative and exciting developments in this subject area.

A clear framework guides the reader through the four parts of the book, covering:

l an introduction to logistics and its contribution to competitiveness and value creation,

l leveraging logistics operations within the context of the customer,

l supplier partnerships, interfaces and the challenges of integration,

l leading-edge thinking in logistics and the future challenges ahead.

New to this edition…

l more on reverse logistics together with green, ethical and CSR issues,

l revised chapters on supply chain planning and control and on agility,

l fully revised final chapter ties in the future challenges facing logistics more closely

with the rest of the book.

‘Well written and contains a wealth of valuable ideas and concepts.’

Dr Jan de Vries, University of Groningen

Every chapter features case studies with study questions, activities and end of chapter discussion questions

to help students explore logistical concepts in operational detail. Teaching support notes and PowerPoint

slides for lecturers can be downloaded from the book’s website at www.pearsoned.co.uk/harrison

‘Very up-to-date, both in terms of its conceptual framework and

the topics covered. Remarkably clear and easy to read.’

Dr Tony Whiteing, University of Huddersfield

Alan Harrison is Professor of Operations and Logistics at Cranfield School of Management, and Director of

Research at The Cranfield Centre for Logistics and Supply Chain Management.

Remko van Hoek is Professor of Supply Chain Management at The Cranfield Centre for Logistics and Supply

Chain Management. He is also Vice President Procurement at Nuon in the Netherlands.

www.pearson-books.com

9780273712763_03_COVER.indd 1 18/10/07 13:56:29

Logistics Management

and Strategy

Competing through the supply chain

LOGI_A01.QXP 3/17/08 9:35 AM Page i

We work with leading authors to develop the

strongest educational materials in logistics,

bringing cutting-edge thinking and best

learning practice to a global market.

Under a range of well-known imprints, including

Financial Times Prentice Hall, we craft high quality print and

electronic publications which help readers to understand

and apply their content, whether studying or at work.

To find out more about the complete range of our

publishing, please visit us on the World Wide Web at:

www.pearsoned.co.uk

LOGI_A01.QXP 3/17/08 9:35 AM Page ii

Logistics Management

and Strategy

Competing through the supply chain

Third Edition

Alan Harrison

Remko van Hoek

LOGI_A01.QXP 3/17/08 9:35 AM Page iii

Pearson Education Limited

Edinburgh Gate

Harlow

Essex CM20 2JE

England

and Associated Companies throughout the world

Visit us on the World Wide Web at:

www.pearsoned.co.uk

First published 2002

Second edition published 2005

Third edition published 2008

© Pearson Education Limited 2002, 2005

© Alan Harrison and Remko van Hoek 2008

The rights of Alan Harrison and Remko van Hoek to be identified as authors

of this work have been asserted by them in accordance with the Copyright,

Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in

a retrieval system, or transmitted in any form or by any means, electronic,

mechanical, photocopying, recording or otherwise, without either the prior

written permission of the publisher or a licence permitting restricted copying

in the United Kingdom issued by the Copyright Licensing Agency Ltd,

Saffron House, 6–10 Kirby Street, London EC1N 8TS.

All trademarks used herein are the property of their respective owners. The use of

any trademark in this text does not vest in the author or publisher any trademark

ownership rights in such trademarks, nor does the use of such trademarks imply any

affliliation with or endorsement of this book by such owners.

ISBN: 978-0-273-71276-3

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data

Harrison, Alan, 1944–

Logistics management and strategy : competing through the supply chain / Alan Harrison,

Remko van Hoek.— 3rd ed.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0-273-71276-3 (pbk. : alk. paper) 1. Business logistics. 2. Industrial

management. I. Hoek, Remko I. van. II. Title.

HD38.5.H367 2008

658.5—dc22

2007046447

10 9 8 7 6 5 4 3 2

11 10 09 08

Typeset in 9.5pt Stone Sans by 3

Printed and bound in Malaysia

The publisher’s policy is to use paper manufactured from sustainable forests.

LOGI_A01.QXP 3/17/08 9:35 AM Page iv

To Nick, Katie, Maryl and Ticho, with love.

LOGI_A01.QXP 3/17/08 9:35 AM Page v

LOGI_A01.QXP 3/17/08 9:35 AM Page vi

Contents

Foreword xv

Preface xvii

Author’s acknowledgements xix

Publisher’s acknowledgements xx

How to use this book xxiii

Plan of the book xxv

Part One COMPETING THROUGH LOGISTICS

1 Logistics and the supply chain 3

Introduction 3

1.1 Logistics and the supply chain 4

1.1.1 Definitions and concepts 6

1.1.2 Supply chain: structure and tiering 8

1.2 Material flow and information flow 12

1.2.1 Material flow 12

1.2.2 Information flow 14

1.3 Competing through logistics 15

1.3.1 Hard objectives 16

1.3.2 Supportive capabilities 18

1.3.3 Soft objectives 22

1.3.4 Order winners and qualifiers 23

1.4 Logistics strategy 25

1.4.1 Defining ‘strategy’ 26

1.4.2 Aligning strategies 27

1.4.3 Differentiating strategies 28

Summary 30

Discussion questions 31

References 31

Suggested further reading 32

2 Putting the end-customer first 33

Introduction 33

2.1 The marketing perspective 34

2.1.1 Rising customer expectations 35

2.1.2 The information revolution 35

2.2 Segmentation 36

2.3 Quality of service 44

2.3.1 Customer loyalty 45

LOGI_A01.QXP 3/17/08 9:35 AM Page vii

2.3.2 Value disciplines 46

2.3.3 Customer relationship management (CRM) 47

2.3.4 Measuring service quality 50

2.4 Setting priorities for logistics strategy 50

2.4.1 Step 1: Diagnose current approach to market segmentation 50

2.4.2 Step 2a: Understand buying behaviour 52

2.4.3 Step 2b: Customer value analysis 53

2.4.4 Step 3: Measure logistics strategy driver 54

2.4.5 Step 4: Specify future approach to market segmentation 54

Summary 57

Discussion questions 58

References 63

Suggested further reading 64

3 Value and logistics costs 65

Introduction 65

3.1 Where does value come from? 66

3.1.1 Return on investment (ROI) 67

3.1.2 Financial ratios and ROI drivers 69

3.2 How can logistics costs be represented? 71

3.2.1 Fixed/variable 71

3.2.2 Direct/indirect 76

3.2.3 Engineered/discretionary 78

3.3 Activity-based costing (ABC) 81

3.3.1 ABC example 82

3.3.2 Cost–time profile (CTP) 83

3.4 A balanced measurement portfolio 85

3.4.1 Balanced measures 86

3.4.2 Supply chain management and the balanced scorecard 87

3.4.3 Supply chain financial model 88

3.5 Supply chain operations reference model (SCOR) 89

Summary 93

Discussion questions 94

References 95

Part Two LEVERAGING LOGISTICS OPERATIONS

4 Managing logistics internationally 99

Introduction 99

4.1 Drivers and logistics implications of internationalisation 101

4.1.1 Logistical implications of internationalisation 102

4.1.2 Time-to-market 105

4.1.3 Global consolidation 106

4.1.4 Risk in international logistics 109

viii Contents

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4.2 The tendency towards internationalisation 111

4.2.1 Focused factories: from geographical to product

segmentation 111

4.2.2 Centralised inventories 112

4.3 The challenges of international logistics and location 115

4.3.1 Extended lead time of supply 116

4.3.2 Extended and unreliable transit times 116

4.3.3 Multiple consolidation and break points 116

4.3.4 Multiple freight modes and cost options 117

4.3.5 Location analysis 118

4.4 Organising for international logistics 120

4.4.1 Layering and tiering 120

4.4.2 The evolving role of individual plants 121

4.4.3 Reconfiguration processes 122

4.5 Reverse logistics 129

4.6 Managing for risk readiness 130

4.6.1 Immediate risk readiness 130

4.6.2 Structural risk readiness 131

4.7 Corporate social responsibility in the supply chain 132

Summary 136

Discussion questions 137

References 137

Suggested further reading 137

5 Managing the lead-time frontier 139

Introduction 139

5.1 The role of time in competitive advantage 140

5.1.1 Time-based competition: definition and concepts 140

5.1.2 Time-based initiatives 141

5.1.3 Time-based opportunities to add value 141

5.1.4 Time-based opportunities to reduce cost 144

5.1.5 Limitations to time-based approaches 146

5.2 P:D ratios and differences 146

5.2.1 Using time as a performance measure 147

5.2.2 Using time to measure supply pipeline performance 148

5.2.3 Consequences when P-time is greater than D-time 150

5.3 Time-based process mapping 153

5.3.1 Stage 1: Create a task force 154

5.3.2 Stage 2: Select the process to map 154

5.3.3 Stage 3: Collect data 155

5.3.4 Stage 4: Flow chart the process 155

5.3.5 Stage 5: Distinguish between value-adding and

non-value-adding time 155

5.3.6 Stage 6: Construct the time-based process map 156

5.3.7 Stage 7: Solution generation 156

Contents ix

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5.4 Managing timeliness in the logistics pipeline 161

5.4.1 Strategies to cope when P-time is greater than D-time 162

5.4.2 Practices to cope when P-time is greater than D-time 163

5.5 A method for implementing time-based practices 164

5.5.1 Step 1: Understand your need to change 165

5.5.2 Step 2: Understand your processes 165

5.5.3 Step 3: Identify unnecessary process steps and large

amounts of wasted time 166

5.5.4 Step 4: Understand the causes of waste 166

5.5.5 Step 5: Change the process 166

5.5.6 Step 6: Review changes 166

5.5.7 Results 167

5.6 When, where and how? 167

Summary 168

Discussion questions 169

References 169

Suggested further reading 169

6 Supply chain planning and control 171

Introduction 171

6.1 The supply chain ‘game plan’ 173

6.1.1 Planning and control within the focal firm 173

6.1.2 Managing inventory in the supply chain 177

6.1.3 Inter-firm planning and control 181

6.2 Just-in-time (JIT) 184

6.2.1 The just-in-time system 185

6.2.2 JIT and material requirements planning (MRP) 190

6.3 Lean thinking 192

6.3.1 The seven wastes 194

6.3.2 Application of lean thinking to business processes 195

6.3.3 Role of lean practices 196

6.3.4 Design strategies 197

6.3.5 Lean product design 197

6.3.6 Lean facility design 197

6.3.7 Lean thinking summary 198

Summary 198

Discussion questions 199

References 200

Suggested further reading 201

7 The agile supply chain 203

Introduction 203

7.1 The concept of agility 204

7.1.1 Demand characteristics and supply capabilities 206

7.1.2 Classifying operating environments 214

x Contents

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7.1.3 Preconditions for successful agile practice 214

7.1.4 Summary 219

7.2 Agile drivers and practices 219

7.2.1 Joint decision making to improve external network

integration 222

7.2.2 Developing measures to put the end-customer first 223

7.2.3 Shared goals to improve virtual integration 224

7.2.4 Boundary-spanning SOP to improve process integration 225

Summary 226

Discussion questions 227

References 228

Suggested further reading 229

Part Three WORKING TOGETHER

8 Integrating the supply chain 233

Introduction 233

8.1 Integration in the supply chain 234

8.1.1 Internal integration: function to function 235

8.1.2 Inter-company integration: a manual approach 237

8.1.3 Electronic integration 238

8.2 Efficient consumer response (ECR) 242

8.2.1 Category management 243

8.2.2 Continuous replenishment 243

8.2.3 Enabling technologies 244

8.3 Collaborative planning, forecasting and replenishment (CPFR) 248

8.3.1 Benefits of electronic collaboration 252

8.4 Vendor-managed inventory (VMI) 252

8.4.1 How VMI works 253

8.4.2 Potential benefits 253

8.4.3 Potential problems in setting up a VMI system 254

8.5 Quick response (QR) 255

8.5.1 JIT/QR relationship 256

8.5.2 Role of enabling technologies 256

8.6 Managing supply chain relationships 257

8.6.1 Creating closer relationships 257

8.6.2 Factors in forming supply chain relationships 258

Summary 260

Discussion questions 261

References 262

Suggested further reading 263

9 Purchasing and supply relationships 265

Introduction 265

Contents xi

LOGI_A01.QXP 3/17/08 9:35 AM Page xi

9.1 Choosing the right supply relationships 266

9.2 Partnerships in the supply chain 274

9.2.1 Economic justification for partnerships 274

9.2.2 Advantages of partnerships 274

9.2.3 Disadvantages of partnerships 275

9.3 Supply base rationalisation 275

9.3.1 Supplier management 276

9.3.2 Lead suppliers 276

9.4 Supplier networks 277

9.4.1 Supplier associations 277

9.4.2 Japanese keiretsu 280

9.4.3 Italian districts 281

9.5 Supplier development 284

9.5.1 Integrated processes 285

9.5.2 Synchronous production 285

9.6 Implementing strategic partnerships 286

Summary 290

Discussion questions 291

References 292

Suggested further reading 293

Part Four CHANGING THE FUTURE

10 Logistics future challenges and opportunities 297

Introduction 297

10.1 Internal alignment 298

10.2 Selecting collaborative opportunities upstream and downstream 302

10.3 Managing with cost-to-serve to support growth and profitability 305

10.4 The supply chain manager of the future 308

Summary 310

Discussion questions 310

References 310

Suggested further reading 310

Index 311

xii Contents

LOGI_A01.QXP 3/17/08 9:35 AM Page xii

Supporting resources

Visit www.pearsoned.co.uk/harrison to find valuable online resources

For instructors

• Complete, downloadable Instructor’s Manual, containing teaching notes,

notes on case studies and teaching tips, objectives and discussion points for

each chapter

• Downloadable PowerPoint slides of all figures from the book

For more information please contact your local Pearson Education sales

representative or visit www.pearsoned.co.uk/harrison

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